Egypt Invites Indian Companies to Build Industrial Zone in Suez Canal Region
New Delhi, Oct 17 (TheTrendingPeople.com): Egypt’s Foreign Minister Badr Abdelatty on Friday extended a major invitation to Indian companies to establish a dedicated industrial zone within the Suez Canal Economic Zone (SCZONE) — a strategic trade and investment hub connecting Asia, Africa, and Europe.
During an interaction with select journalists in New Delhi, Abdelatty highlighted Egypt’s growing interest in expanding economic collaboration with India, particularly in sectors like chemicals, fertilizers, renewable energy, artificial intelligence, and green hydrogen. His visit marks the beginning of a new chapter in India-Egypt relations, following the First India-Egypt Strategic Dialogue held on Thursday alongside India’s External Affairs Minister S. Jaishankar.
“We have a special industrial zone for China and another for Russia in this region. We are now encouraging the establishment of an Indian industrial zone alongside the Suez Canal Economic Zone. Egypt is offering all necessary facilitation, incentives, and opportunities to Indian companies — backed by access to one of the world’s largest regional markets,” Abdelatty said.
A Strategic Push for Bilateral Trade
The Egyptian minister, on his first official visit to India since taking office, held meetings with top Indian industrial leaders and CEOs from multiple sectors. His agenda was clear — to attract fresh Indian investment to Egypt, strengthen trade ties, and create a long-term foundation for economic partnership.
Abdelatty emphasized that India remains a valued partner for Egypt’s industrial development. “Our goal is to expand the presence of Indian companies in Egypt. We appreciate India’s investment contributions and the significant trade volume shared between our countries. Egypt offers both opportunity and scale,” he said.
He also met Prime Minister Narendra Modi, where discussions reportedly focused on enhancing trade, manufacturing, and energy cooperation — reinforcing the shared vision of both nations for a more interconnected global economy.
SCZONE: The Gateway Between Continents
The Suez Canal Economic Zone holds immense strategic importance. Situated along one of the busiest maritime trade routes on Earth, SCZONE connects Europe and North Africa to Asia via the Red Sea and Arabian Gulf. The region’s geographical advantage, coupled with its world-class infrastructure, makes it a global gateway for logistics and manufacturing.
Egypt has been positioning the SCZONE as a comprehensive development axis, integrating industrial clusters, ports, and free-trade areas. With proximity to the Suez Canal — through which nearly 12% of global trade flows — SCZONE provides investors with unmatched access to major international markets.
By inviting India to set up its own industrial zone, Cairo is offering Indian enterprises a ready-made launchpad to expand across Africa, the Middle East, and Europe.
Why Egypt Wants India at the Suez Hub
Abdelatty explained that the Egyptian government, under President Abdel Fattah El-Sisi, is actively creating a conducive business environment for international investors. The initiative extends beyond traditional manufacturing and encompasses emerging industries critical to the global transition toward sustainability and technology.
“Egypt is providing all possible support for Indian companies. We are not only talking about traditional industries like chemicals, pharmaceuticals, and fertilizers, but also new-age sectors such as digitalization, artificial intelligence, renewable energy, and clean technologies,” he said.
The minister also underlined Egypt’s growing role in green hydrogen and green ammonia production — vital for decarbonizing industries in Europe and Asia. “Several Indian companies are already showing keen interest in investing in Egypt’s green energy projects. With Europe nearby and targeting massive imports of green hydrogen every year, India’s participation could be transformative,” he added.
A Market of 120 Million and Beyond
Egypt offers a domestic market of 120 million people, including approximately 10 million refugees residing in the country. This population scale, Abdelatty noted, provides a strong consumer base as well as a competitive labor force.
Furthermore, Egypt’s extensive network of free trade agreements enhances its attractiveness for investors. These agreements link Egypt to the African Continental Free Trade Area (AfCFTA), the Arab Free Trade Agreement, and the EU-Egypt Association Agreement, enabling access to hundreds of millions of consumers beyond its borders.
This makes the proposed Indian industrial zone not just a bilateral project, but a potential hub for regional trade and re-exports — aligning perfectly with India’s ambition to diversify supply chains and strengthen its global manufacturing footprint.
Connectivity, IMEC, and Geopolitical Relevance
Discussing connectivity and logistics, Abdelatty stressed that Egypt sits “at the heart of global connectivity projects.” He emphasized the country’s readiness to participate in international infrastructure corridors that link East and West — particularly the India-Middle East-Europe Economic Corridor (IMEC).
“Connectivity is extremely important. Egypt’s position — with the Suez Canal and SCZONE — makes it an essential part of any project linking the Mediterranean with Southeast Asia and the Gulf region. We are open to joining and facilitating all projects of connectivity,” Abdelatty said.
However, he also acknowledged that regional instability, especially following the Israel-Hamas conflict in 2023, has affected several proposed connectivity initiatives. “For such projects to succeed, a stable and conducive environment is essential. We support all efforts that enhance regional cooperation and trade,” he noted.
Implications for Indian Investors
The proposal for an Indian industrial zone in the Suez Canal region carries significant strategic and economic potential:
- Market Expansion: Indian manufacturers could use Egypt as a base to access African and European markets, benefiting from preferential trade agreements.
- Energy and Sustainability: Collaboration in green hydrogen, solar energy, and clean technologies aligns with India’s global climate goals.
- Supply Chain Diversification: Setting up operations in Egypt can help Indian companies mitigate logistical risks and reduce dependence on traditional routes.
- Strategic Positioning: Egypt’s geographic location between continents strengthens India’s trade presence across the global south and the Mediterranean region.
Egypt’s Vision for SCZONE
The Egyptian government envisions the SCZONE as a global logistics and industrial hub by 2030, focusing on sustainable industries, high-tech manufacturing, and renewable energy exports. Indian companies have already shown growing interest in Egypt — particularly in plastics, fertilizers, chemicals, and clean energy projects — setting the stage for deeper integration through a full-fledged industrial zone.
Abdelatty emphasized that Egypt’s long-term objective is not only to attract investment but also to build lasting partnerships that create employment, foster innovation, and integrate the nation into global value chains.
Final Thoughts from TheTrendingPeople.com
Egypt’s invitation for India to set up an industrial zone within the Suez Canal Economic Zone reflects a bold step toward re-imagining trade and investment corridors between Asia, Africa, and Europe. The opportunity is not only economic but also strategic — a partnership that could redefine how both nations engage with global supply chains.
For India, the proposal presents a rare combination of market potential, geographic advantage, and green investment opportunity. For Egypt, it’s a pathway to diversify foreign investment and cement its role as a cross-continental hub for trade and innovation.
If both countries convert this vision into tangible agreements, the India-Egypt partnership could become one of the defining success stories in the emerging global economic order.